Interview with director, Avle

There are hidden costs associated with the recent surge in the use of statistical and business systems. As ignored as they often are, it is important to factor them when developing a financial model analysis when designing projects that involve their use. Avle centre hopes to make such products available to all by their training programmes in statistical management.

Last week, we arranged for a meeting with the director. Characterized by his baritone voice and charisma, he no doubt left an impression on the interview team. This is an excerpt of the interview with him.

Interviewer: You are welcome to this session Mr Wei.

Wei: Thank you. I am very much delighted to be here. I am sometimes addressed by Mei. It has some origin in japanese art. You know, they have been into creation of art works and humanizing them for many years now.

Interviewer: Ok. We know you have a hectic schedule. We want you to discuss about avle centre and their obsession with bringing statistical analysis into managing our business systems.

Wei: Thanks. Unfortunately, I see most of business from a statistical point of view as I discussed the origin of my other name. Estimates for project investments are usually addressed at about 30 to 50 percent of actual project expenses. What this means is that an analyst will provide a figure to a client and as projects make progress, management of these organizations realise that they have massively undervalued their organizations. These lead to project shutdown and high turnover of employees. Avle realized that earlier. The name has actually been adapted from its original name which was designed to meet the need of its initial audience. With expansion from a mere viewership platform to an organization, the name avle centre was adopted.

Interviewer: So you believe that the main issue is with the problems organizations face in budget planning and project analysis.

Wei: You have clearly noted. Able centre has a mission to make a rigorous and more aggressive project analysis available. Because it is an expensive venture, the centre works with a small client network at the moment.

Interviewer: Could you go on with the discussion on project analysis.

Wei: Generally, the project being conceived is usually compared with existing projects of similar magnitude. This would guide the initial draft of funding to be committed. The one closest in terms of manpower hours , electricity or gas consumption is then compared with and the costs used as a guide. This is because these factors serve as an early guide for the amount a  project venture would likely consume. These cost indices form, from experience, the basis for many initiatives requiring huge capital outlay.

Let's analyze a situation where it costs 2 000 of a currency to build a home in an area (in the year 2010) with historical cost index of 102.2. We then estimate this index to become 114.3 by 2012.  With a current cost index estimated at 123.4 and 134.3 in different areas at the different years, building costs is estimated to become 2 430 in value. If this doesnt come out clear, the formula for obtaining future cost is the product obtained by multiplying the historical cost index ratio with the product of current cost ratio and the building cost. If this organization uses fresh concrete technology (with known setting times upon their delivery), our analysis come in handy in preventing future expenses that could be incurred in their projects.

Interviewer: Thank you Sir for your time.

Wei: Thank you. We will keep im touch on the changes with project analysis.

( avle centre provides project analysis services. Editor writes from Lagos).